This morning in
my inbox there was an email from Brasscheck TV about the government
finally charging Goldman Sachs with fraud. Included in the email
was a link to a segment that Matt Taibbi did about his article, "The
Great American Bubble Machine". In the interview, one of
the most significant things he talks about is the commodities market -
and how Goldman Sachs opened up the market to speculators and how the
speculators drove up the price - severing the relationship between
supply and demand.

Obviously,
bubbles are created due to market failure. Can you hear the
screams of people who think they are capitalists? MARKET FAILURE! NOOOOoooooooooooooooooooooo WAYYYYYYY! Then they
launch into Economics 101, open market, free trade, supply and demand,
the bazaar view of capitalism with a couple of guys on the street
exchanging goods of value... blah blah without a backwards logic check
on what happened on Wall Street and why it happened.

There are
actually two failures of the market - securitization and centralization.

The first
failure, securitization, is the packaging of individual salable goods
into logical bundles of like goods that can be traded. This
removes the risk of the original transaction between buyer and seller.
The bundled salable good comprised of aggregated individual transactions
is a logical entity - just a pieces of paper that somebody says has
value. The paper of aggregated transactions become bytes in a
computer that fly over the telecommunications system to be traded in a
logical centralized "marketplace" which is nothing more than a computer
system. And the shysters of Wall Street convinced Congress that
it's good idea to have a global market so that foreign governments and
investors can buy these logical bundles of salable goods with an alleged
value. (I have some air for sale. Are you in the
market? )

The bundling of
junk for sale in securities was the creation of the U.S. Treasury
Department under the stewardship of Nicholas F. Brady for the express
purpose of defrauding investors. It was called 'The
Brady Plan' and it could be described as spreading the losses.

Excerpts - emphasis added

“The Brady
Plan, the
principles
of which
were first
articulated
by U.S.
Treasury
Secretary
Nicholas
F. Brady
in March
1989, was
designed
to address
the
so-called
LDC debt
crisis of
the
1980's.
The debt
crisis
began in
1982, when
a number
of
countries,
primarily
in Latin
America,
confronted
by high
interest
rates and
low
commodities
prices,
admitted
their
inability
to service
hundreds
of
billions
of dollars
of their
commercial
bank
loans.
Because
many of
these
countries'
economies
were then
dependent
on
commercial
bank
financing,
continued
debt
reschedulings
and the
resulting
perception
of
uncreditworthiness
led to a
"lost
decade" of
economic
stagnation,
during
which
voluntary
international
credit and
capital
flows to
these
nations
and their
private
sectors
all but
halted.

The Brady
Plan was
very
successful
in several
important
respects.
First, it
allowed
the
participating
countries
to
negotiate
substantial
reductions
in their
overall
levels of
debt and
debt
service.
Second,
it
succeeded
in
diversifying
sovereign
risk away
from
commercial
bank
portfolios
more
widely
throughout
the
financial
and
investment
communities.
Third, it
encouraged
many
Emerging
Markets
countries
to adopt
and pursue
ambitious
economic
reform
programs.
Finally,
the Brady
Plan has
enabled
many
Emerging
Market
countries
to regain
access to
the
international
capital
markets
for their
financing
needs.”

“Structural
adjustment
was the
centerpiece
of the
Baker
Plan,
which the
Reagan
administration
proclaimed
during the
IMF-World
Bank
meeting in
Seoul in
1985.
World Bank
and IMF
funds to
assist the
indebted
countries
make their
interest
payments
were
promised
on
condition
that they
adopted
'economic
policies
along Reaganomic
lines -
privatization
of state
enterprises,
an end to
subsidies,
opening
the
economies
to foreign
investment.'

The second
failure is the concept of a telecommunications based, centralized market
for trading salable entities. In other words, Internet-based
markets - sometimes called exchanges. The Internet-based market place is
a natural monopoly that is not being recognized as such probably because
it is a monopoly of market rather than a monopoly of a particular
commodity or good. Internet-based markets represent
the corporatization of the market which is no different than government
centralization for a command economy. The controller of the market
(the computer on which the trading platform resides), can easily
manipulate the market in about a million ways that the regulators would
never be able to catch up to - allowing the controller of the platform
to manipulate price, supply and demand (dropping orders or re-routing
orders for example).

Logical Markets

What was described above is a logical
marketplace as opposed to a physical marketplace. It is a
conceptual creation that is not grounded in the physical reality.
In a logical marketplace, any conceptual creation can be bundled and
sold as if it were an actual commodity. And since it is a
conceptual creation, there can be symbolic substitution meaning that the
public is presented one image of what is being sold, while the
underlying asset is actually something different. Whether the
symbolic substitution represents fraud or not depends upon the pin point
accuracy of the symbolic definition. For example, carbon credits
are a conceptual creation that have no real underlying physical asset
that is for sale. And since corporations are in the business to
make money, there is no reason for them to buy or sell them. So
carbon credits have to be a symbolic substitution for something else
that would have value to the traders. Keeping in mind the
requirement for pinpoint accuracy to avoid the fraud charge, what would
a carbon credit represent? How about a living creature -
human or animal? If you consider a living creature as a carbon
unit, then you can place a value on that unit. Since there is no
reason to mask the trading of animals, we can eliminate them from the
conceptual carbon credit market. That leaves humans as the
tradable unit in the carbon credit market.

Setting aside any moral considerations, if
one does a corporate analysis of the American demographics, one finds
large segments of the population that have no productive value in the
'New Economy' which is a command economy charged with the mission of
reverse engineering civilization. The conceptual packaging for it
is the 'Green Economy', maximizing efficiency with government being the
largest employer but also the funder of small businesses engaged in
'green jobs' which nobody can define.

The unproductive population breaks down
into a number of categories, the elderly, the disabled and
semi-disabled, the illiterate, and the people who have had their careers
exported but that are not re-trainable for other jobs because of the
labor glut. From a Wall Street perspective, it is unacceptable to
have a large, unproductive population regardless of the fact that they
created it with globalization of the economy (re-distribution of
production to cheap labor markets). The conceptual solution of
course, is to securitize the junk carbon units and sell them. But
who would buy? Simple, the underlying asset is the body.
The body has value for medical science and pharmaceutical research not
coincidently timed to the completion of the Human Genome Project to map
the genes and the need for a large population to use for applied genetic
research.

Outrageous you say? Hitlarian?
Crimes against humanity? Lest we forget, the origin of the
eugenics movement was in the United States, it was in large part funded
by the Carnegie and Rockefeller Foundations with the full complicity of
the American government. The academic thinking for it came out of
our best universities - Stanford, Yale, Harvard. And as was
described above, the American government aided and abetted the banks in
defrauding investors with securitized bad loans to third world
countries. So I think we can safely set aside morality and look at
the how the market is being structured.

Nationalized
Electronic Medical Records

When the
concept of electronic medical records is examined, there really is no
benefit to offset the cost. People who do have particular problems
that require a bracelet or tag of some kind are a small percentage of
the population and there are options for dealing with their individual
problems without affecting the entire population. They could have
their entire medical record scanned and put on chip that they wear
around their neck or in a ring on their finger. No big deal.

The media
propaganda about Medicare fraud is just that - propaganda. From
the beginning of automation of medical claims - nearly 50 years ago,
there has been fraud checking of claims against the claims history.
If massive fraud occurred, it was because it was by design for the
purpose of the dialectical problem that demands a solution.

The purpose
that the nationalized, electronic medical records does serve is to have
a symbolically conceptualized product that can be bundled and sold as a
security in a carbon trading market such as the Chicago Climate
Exchange. The underlying value of the security will be determined
based upon the diagnostic codes, age and other factors in the medical
record. The government's involvement in it is that
they paid for the health data exchange systems to be built and the
exchanges will be government contractors. The health data
exchanges will be the securitizers for the trading market.

In the
propaganda campaign concerning the health care legislation, the alleged
purpose of the health data exchanges is to allow consumers to shop for
the cheapest health insurance that will be required by law for everybody
to have. But it works the other way too. If a person's
medical record has attributes that interest a pharmaceutical company for
research purposes, the pharmaceutical company can subsidize the
insurance through an insurance company that will probably be a new,
shell insurance company but not necessarily. There are many ways
that the pharmaceutical corporations can provide funding that would mask
a direct connection between the subsidized price and the steering to a
special plan that will allow the corporation to control the benefits and
the conditions for coverage.

The
Magician's Art

The art of the
Magician is to focus your attention away from where the trick is
actually done. "Look over here - when you need to look the other
way to see the trick". The paradigm shift of our health
insurance and health care system to focus on the healthy is a Magician's
trick and a confidence game rolled into one. Buying insurance to
have them act in the capacity of a nanny is absurd. (Any of you
Eskimos want to buy some ice?) The real purpose of the shift in
focus is so that doctor's will perform an automatic triage of patients
with chronic and deteriorating conditions to specialized providers of
health care because if they don't, their income will be negatively
affected by having sick people as patients (pay for performance). (In
a million years, I could never make this stuff up).

The triage
segregates the junk carbon population from the rest of the population in
a logical corral. The logical corral will no doubt be the
member clinics and health care providers hooked into the
HMO Research Network.
Members of the HMO Research Network integrate medical research with
standard clinical practice.

Follow
the Logic

Following the
logic of a system is like a tracker following signs. For you city
slickers, that means following the droppings. Project Destiny is
an enormous, steaming pile that was mentioned by a quivering Edward
Liddy, CEO of AIG during the Congressional Hearings on the bailout of
AIG. Project Destiny is an initiative sponsored by the
pharmaceutical giants to transform the pharmacy into a frontline health
care provider. Keeping in mind that applied genetics research is
about body chemistry and drug interactions consider the following:

According
to initial results of the landmark "Project Destiny" initiative,
community pharmacy can ensure its healthcare services beyond
dispensing medication are embraced broadly, if it acts decisively
and cooperatively with healthcare industry stakeholders. The three
pharmacy groups advancing the initiative now are developing a
strategic plan to advance the concepts identified in the first
phase, which hold promise for healthcare quality, access and
affordability.

Project Destiny is a joint initiative of the American Pharmacists
Association (APhA), the National Association of Chain Drug Stores (NACDS)
and the National Community Pharmacists Association (NCPA).
Pharmaceutical companies supporting the project financially include
sanofi-aventis, GlaxoSmithKline, Boehringer Ingelheim
Pharmaceuticals, Pfizer U.S. Pharmaceuticals and Wyeth.

The stated objective of Project Destiny is to develop a replicable,
scalable, measurable, and economically viable future model for
community pharmacy. The
project seeks to identify ways that patients and the healthcare
system can benefit from community pharmacy's medication expertise,
in a way that is economically viable for all parties.

The connection between Milken's
Institute and Project Destiny came to light in the
petition that the Board of Pharmacy Specialties filed to request
certification for the new pharmo-doc professional classification.
In the certification, they referenced a
2007 Milken Institute Study that provided the alleged financial
cost savings that could be had by market-based health care reform.

Recapping,
we've established that the market-based system is a logical market over
a telecommunications system and that it provides a platform for logical
trading of commodities that can be physical or conceptual (logical) and
that a conceptual commodity like carbon credits can be represented
symbolically because there is no physical good being traded that one can
point to as in the case of a real commodity like gold, pork bellies or
oranges. Further, from a business point of view, the carbon credit
trading system makes no sense for a capitalist country because it's
intended purpose is reductionist - destructive to production,
destructive to capitalism.

Continuing with
the logical inconsistencies of the Chicago Climate Exchange is that it
is a privately owned carbon trading platform that was paid for by
grants
from the Joyce Foundation.
The grants were issued when Barack Obama was sitting on the Board of
Directors. The decision to fund the building of a CO2 carbon
credit trading system has to be considered suspect because there already
was an established carbon (energy) market that had been in business for
nearly half a decade. That's too far lagging behind for a new
commodity trading system to catch up. But if one applies the
concept of carbon credits as being symbolic, representative of
securitized medical records put up for sale to insurance and
pharmaceutical companies, then it all makes sense - except for one
thing. How to explain the market when Cantor Fitzgerald already
controlled the market for the real energy commodity and it would have
been the logical place for a carbon credit trading system to offset the
carbon trading which blows the cover of the symbolic representation of
carbon credit units.

Did I mention that
Michelle Obama worked for the University of Chicago hospital system?
And that she had been an intellectual property lawyer prior to going to
work for the University hospital system and that she was Executive
Director of Community and External Affairs - and that she would have
been the point of contact for anybody who was interested in developing a
system to trade electronic, securitized medical records?
Consider it mentioned. And we won't even mention Rahm
Emanuel and his brother,
Ezekiel who is a Doctor.

The problem for
these people - these monsters who conceived the carbon credit trading
system is that while they can produce a Madison Avenue marketing
campaign to make it appear to be something that it isn't, they can't
correct the logical inconsistencies. The logical inconsistencies
are resolved once the symbolic representation of 'carbon credit' is
replaced with that actual value which is 'electronic medical record'
which defines the characteristics of a carbon unit - a human being.

Vicky Davis
April 18, 2010

Vicky L. Davis was a Computer Systems
Analyst/Programmer who spent 20 years designing and writing
computer systems for large corporations and state and local
governments. For 15 of those years, she worked as a
Contractor, which gave her exposure to a wide variety of
different businesses and their internal applications and
operations.